The US economy was thrown back into the spotlight today as the FOMC
minutes were released and the dovish FED of the past certainly looked a
thing of the past, with some of the most upbeat and hawkish minutes that
have been seen in a long time. Almost all of the officials present in
the meeting expected that with Trumps appointment growth was expected to
pick up in line with his expansionary policies. One thing that also
stood out was the FED's own expectation around inflation with
expectations that it will increase to the magic 2% mark in the medium
term, and the recent lift in quarterly inflation was further credit to
this theory. Regardless of the trump effect the FED looks to be singing
the same tune as the market and that can only be positive for the bulls
in the short term. The real question will be around what Trump can
actually do with congress in order to get the US economy moving again
and the economy expanding further - even when it's almost at full
capacity when it comes to employment.

Regardless of how you viewed the FOMC minutes, the recent economic
data out of the US has been positive with the construction spending m/m
lifting to 0.9% (0.5% exp) and ISM manufacturing PMI also lifting to
54.7 (53.8 exp). All of this has boded well for traders and the markets
have responded accordingly with the S&P 500 lifting back up to a
strong level of resistance in anticipation of tomorrows economic data
due out on the employment sector and the services sector as well. Even
with resistance currently sitting at 2272 the expectation of further
highs is fresh on traders' minds and they will be looking to push the
boundaries further in the current climate. A push upwards to 2300 is
very much on the cards if the market sees further positive US economic
data tomorrow.

One thing that is also worth watching out for in tomorrow's trading
is oil markets, previously they have been moving quite rapidly in the
low volume trading and volatility is certainly ever traders friend. The
recent build up in private storage showed that perhaps oil markets still
needed a little more time to correct and we saw prices fall accordingly
down to the 20 day moving average before finding dynamic support.
Expectations are for a decline in overall oil inventories, but after the
recent private reading the market may have altered its expectations.

Technically speaking though oil is looking very strong with
resistance sitting tight at 54.46, to get past this level we would need
to see a large drawdown in crude oil inventories, and this may be a bit
of an ask just after Christmas. Any further falls are also likely to
struggle past the 20 day moving average, and even more so the 50 day
moving average which is acting as dynamic support for market movements
at present.